The IRS recently announced the contributions limits to retirement plans for 2021. They kept the maximum contribution limits and catch-up contributions the same as 2020 for 401(k), 403(b), and 457(b), plans. Participants can contribute up to $19,500 in 2021, plus an additional $6,500 if they are over age 50.
| 401(k), 403(b), 457(b), PSP | 2021 | 2020 | 2019 |
|---|---|---|---|
| Annual Compensation | $290,000 | $285,000 | $280,000 |
| Elective Deferrals | $19,500 | $19,500 | $19,000 |
| Catch-up Contributions | $6,500 | $6,500 | $6,000 |
| Defined Contribution Limits | $58,000 | $57,000 | $56,000 |
| Esop Limits | $1,165,000 $230,000 | $1,150,000 $230,000 | $1,130,000 $225,000 |
Other retirement plan related limitations also remain consistent with 2020 with exceptions for a $5,000 increase for Control Employees and $5,100 for Taxable Wage Base.
| Other | 2021 | 2020 | 2019 |
|---|---|---|---|
| HCE Threshold | $130,000 | $130,000 | $125,000 |
| Defined Benefit Limits | $230,000 | $230,000 | $225,000 |
| Key Employee | $185,000 | $185,000 | $180,000 |
| 457 Elective Deferrals | $19,500 | $19,500 | $19,000 |
| Control Employee (board member or officer) | $115,000 | $115,000 | $110,000 |
| Control Employee (compensation-based) | $235,000 | $230,000 | $225,000 |
| Taxable Wage Base | $142,800 | $137,700 | $132,900 |